Which of the following is not a derivative security?
A) Forwards
B) Margins
C) Futures
D) Options

Question

Quizplus · Accepted Answer

Margins are not a derivative security. They refer to an amount of money or securities that must be deposited by an investor with a broker in order to cover some or all of the potential losses that may occur when trading securities. However, forwards, futures, and options are types of derivative securities as they derive their value from an underlying asset or assets.

Which of the Following Is Not a Derivative Security